Despite the dark clouds above us Budgets of the Generalitat with state of public coffers and the return of stability goals, PP and Vox Council some were squared It is calculated that social expenditures for 2024 will be kept at levels very similar to the current yearThis is largely thanks to the expected – although not guaranteed – increase in financing system resources by 16%, providing some room to absorb the increase in the cost of debt. In return, Executive Carlos Mazón He cut investments and the public sector.
In particular, the Generalitat allocates 18 billion 186 million euros to three major social areas: 8 billion 504 million euros to Health (a historical record), 6 billion 871 million euros to Education and 2 billion 811 million euros to Equality. If this common amount is shared among the 5.2 million inhabitants of the Valencian Community, social spending per capita next year will be 3,450 euros.
This is a relatively much higher figure than autonomous countries such as Madrid or Andalusia plan to invest in the same regions.although it allocated much less money than the Generalitat for essential expenses, such as paying off the debts of these regions.
Other Games
Isabel Díaz Ayuso Government plans to spend 19 billion 174 million Euros on Health, Education and Equality Juanma Moreno Bonilla’s raises the estimate to 26,000 million. Both boast higher social spending, but there are other items among them that increase the final number (e.g. Culture in Andalusia and Transport in Madrid).
Limiting the comparison to investment in these three areas, it is concluded that Ayuso allocated 2,840 euros per person and Moreno Bonilla allocated 3,076 euros. About 600 to 400 euros less per person than the Generalitat.
To achieve this per capita expenditure in social areas, Consell needs to make more efforts than Madrid and Andalusia. The Valencian Community allocates eight out of every ten euros of its real expenditure (total expenditure, excluding debt servicing, which is called fiscal expenditure and has no impact on the citizen) to Health, Education and Equality.. One point above the capital and 15% more than the Junta.
The main reason for this is the financial costs that each region has to bear to pay its debt. Consell’s budgets, which have the largest liabilities in Spain, allocate 26% of the total (7,948 million) to cover maturities and interest. Meanwhile, Madrid accounts for less than half the global figure (12%, 3,352 million) and Andalusia a quarter (7.5%, 3,535 million).
Asymmetries are also noticeable in the investment part. Madrid does not really need them, because the State undertakes the vast majority of them (autonomy invests 850 million, which is 30% less than the Generalitat), Andalusia has the strength for this part and allocates the same for investments as for the cost of the debt. The Valencian Community spends almost seven times more on its liabilities than on investments.
Accounts predict budget deficit to triple as Government delivers to Brussels
Consell exploited a legal loophole to include a deficit of 0.3% of GDP in next year’s budget, despite the central government’s recent budget plan sent to Brussels setting it at 0.1% for 2024. 2023 reference rate. A balance requirement was expected for next year, but the Executive gave the regions some oxygen and left it at 0.1% in the plan it sent to the EU, while the State assumed an extra tenth.
However, this fiscal path needs to be formalized in the General State Budget, which will extend the year due to the Executive being in office, so the deficit rate of the autonomies currently remains legally at 0.3%. In fact, Airef has already encouraged the Government to agree these reference rates with the regions in the absence of definitive targets.
Consell also requested information and claimed to have received no response. So it chose to continue directing its accounts in this way, as did Murcia and Catalonia. The move allows the Generalitat to increase its budget by around 290 million euros.
This isn’t the only maneuver Consell employs to balance complex calculations. PP and Vox stopped short of pursuing the 1.3 billion claim for inadequate financing created by Botànic, but they still included several products whose collection was in no way guaranteed.
This is what happens with the 926 million euros included in the revenue section for money owed by the state for healthcare services to displaced people, or the 463 million euros claimed as “compensation” for approved VAT and electricity rebates. by the central government and, according to Consell, reduced regional income by this amount. In total, the three items add up to 1,667.5 million not anticipated by the Administrator.
Barrera will open the disclosures of the accounts on Monday
First Vice President and Minister of Culture and Sports Vicente Barrera will open the participation round of Ministers next Monday in the Valencian Cortes to unveil the respective 2024 budgets, which will last for two more days and close on Wednesday. Department of Culture and Sport, Undersecretary of the Treasury, Ruth Merino. The Budget Bill begins its proceedings in parliament after being approved by the Consell on Monday, which will culminate in its final approval on December 21. The participation program, which was announced in detail yesterday, is as follows: On Monday, the 6th, Barrera, Susana Camarero (Equality) and Elisa Núñez (Justice) will announce their numbers. On Tuesday, it will be the turn of Marciano Gómez (Health), José Antonio Rovira (Education) and José Luis Aguirre (Agriculture), and on Wednesday the wheel will turn to Salomé Pradas (Environment and Infrastructure), Nuria Montes (Innovation, Tourism and Industry) and Ruth Merino ( Treasury and Economy).